Poland to Cut Rates, Markets See More Easing

By

Patryk Wasilewski

Jan 8, 2013 3:48 pm CET

Poland’s monetary policy council is widely expected to cut interest rates Wednesday in order to give the slowing economy a boost, but markets and analysts have already set their sights on deeper easing in coming months.

All 19 economists polled by The Wall Street Journal expect the 10-strong rates panel to cut the benchmark rate by 0.25 percentage points to 4.0% after it lowered borrowing costs by the same amount in November and December.

The European Union’s largest emerging economy decelerated sharply in 2012, with the annual rate of expansion down to 1.4% in the third quarter from 4.3% in 2011. The trend is expected to continue into 2013.

“Comments following the decision will be most important as it will likely show chances for a next rate cut in February,” said Rafal Benecki, chief economist at ING in Warsaw.

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